Romney keys in on ‘buried’ middle class in debate

Republican tries to appeal to middle-income voters

LOS ANGELES (MarketWatch) — Mitt Romney tried to use the words of President Barack Obama’s administration against him in the first of three debates Wednesday in an effort to reach out to middle-class voters that appear to be drifting away from the Republican challenger.

Taking a cue from Vice President Joe Biden’s own words that the middle class has been “buried” for the last four years, Romney said he wants to provide tax relief to the middle class.

Reuters

U.S. President Barack Obama (R) and Republican presidential candidate Mitt Romney take their positions at the start of the first 2012 U.S. presidential debate in Denver, Colorado October 3, 2012.

Romney made the comments in the first of three toe-to-toe matches against Obama in a 90-minute face-off that addressed taxes, deficits and government entitlement programs. Appealing to middle-class voters was Romney’s first, and strongest, salvo in the debate where the Republican challenger is trying to unseat the incumbent whose first four years have been beset by a struggling economy.

“It seems as though Romney is on the top his game tonight and as a result will be interested to hear whether the polls will tighten in the the battleground states,” said Tom di Galoma, a managing director at Navigate Advisors LLC. “This could just be the game change the markets are looking for.”

Said Lewis Alexander of Nomura Securities in a note to clients: “The president still has a strong advantage, but I suspect that market participants will not immediately focus on what happens after the election. I think this means that a strong focus on the ‘fiscal cliff’ will be delayed for some time, until we have a better sense of whether or not this debate has changed the trajectory of the race.”

‘Trickle-down government’

Trying to shed his image as a wealthy, indifferent businessman who would fashion an economy favoring the rich, Romney said Obama’s policies would create a “trickle-down government.”

Obama tried to head off Romney’s path to the portion of the electorate he hopes will come out again to support him when voters head to the polls Nov. 6. But the president failed to capitalize on one of Romney’s most recent gaffes, in which he said in a videotape that 47% of the electorate relies on government aid and feels as though they’re “entitled” to support. The remark appeared to damage Romney’s chances in recent polls.

Instead, Obama focused on the debate at hand and contended Romney will provide $5 trillion in tax cuts to the rich and spend another $2 trillion to beef up defense spending while the nation faces record deficits and a crushing debt that threatens to push the country off a fiscal cliff.

The president pointed out Romney has vowed to pay for his tax cuts by closing loopholes for the rich, but said, “You don’t come close to paying for” the cuts via loophole closures.

During the debate, Romney maintained he had no plan to cut $5 trillion in taxes on the rich and vowed his tax policies would not add to the deficit. But Obama shot back that Romney was changing his policies at the 11th hour, adding that tax cuts for the wealthy have been part of his plan for 18 months.

“Now, five weeks before the election, he’s said this big, bold idea is ‘never mind’,” Obama said.

For now, Obama holds a scant lead in the polls and is up in virtually all battleground states. But the economy continues to struggle and could still prove to be Obama’s Achilles heel.

A lukewarm jobs report issued Wednesday showed the private sector created 162,000 jobs, slightly ahead of the 152,000 expected. On Friday, the second-to-last unemployment report before the election is expected to show again that the jobless rate remains above the 8% level, where it has been since Obama took office.

The two candidates sparred over how best to reduce the nation’s $1 trillion in deficits, with Romney standing firm that raising revenue — i.e. increasing taxes — is out. Obama called for a “balanced” approach where spending cuts are augmented by an increase in revenue by taxing the wealthy.

One way to achieve that is by eliminating breaks for oil companies, Obama said.

The Republican challenger tried to address critics who say much of his plan to cure the nation’s economic ills lacks specifics by offering a five-point plan that includes energy independence, stronger trade, improved education, a balanced budget and supporting small business.

But Obama accused Romney of constantly tailoring his programs in a last-ditch effort to win votes. One exchange took place when moderator Jim Lehrer asked Romney how he felt about government regulation of business.

Romney said regulations are “essential,” and said he would “repeal and replace” the 2010 Dodd-Frank bill designed to overhaul Wall Street. Obama insisted that in the past, Romney has only wanted to repeal the legislation.

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